Motilal Oswal has come out with its report on Capacit'e infraprojects , The research firm has recommended to “ Subscribe ” the IPO in its research report as on September 11, 2017

Capacit'e Infraprojects (Capacit’e), incorporated in August 2012, isa Mumbai based construction company focused on Residential, Commercial and Institutional buildings. It is into construction of super high-rise (>40 floors) and high rise buildings (>7 floors). It considers a single premise or land parcel containing at least 4 buildings, which may include High Rise or Super High Rise Buildings as a gated community, duplex houses and row houses as villaments. It provides end-toend construction services for residential buildings, multilevel car parking, corporate office buildings and buildings for educational, hospitality and healthcare purposes.As on May 2017, West constitute 58.9% of total projects, North 14.3% and South Zone constituted 26.8%. The list of clients includes Kalpataru, Oberoi Constructions Ltd, Wadhwa Group, Saifee Burhani Upliftment Trust, Lodha Group, Rustomjee, Godrej Properties Limited, Brigade Enterprises Limited and Prestige Estates Projects Limited. It has 51 ongoing projects and order book consists of 96% residential, 3%

commercial and 1% institutional projects.

Capacit’e is a Mumbai based construction company with strong executiontrack record. Despite the Infrastructure segment struggling to grow in past few years, company has successfully delivered strong revenue / EBITDA / PAT growth of 75%/121%/169% in FY14-17. Other key strengths of the company are 1) Large Order Book with marquee client base and repeat orders, 2) Presence in cities with high growth potential, 3) Expansion in the mass housing segment, 4) superior ROEs / ROCEs of 29.6% and 38.1%. At upper price band, the issue is priced at PE of 24xFY17

post issue (and 19x FY17 pre-issue) which we believe is attractive in context of strengths mentioned above. Hence we recommend SUBSCRIBE for long term investment.

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